(Total Views: 748)
Posted On: 05/08/2020 1:41:38 PM
Post# of 32974
Theodore Rudd O’Neill - Litchfield Hills Research, LLC
"So, Rory, on the non-digital, non-recurring part of the business, which has terrible margins, should we expect that to decline as the digital business increases? Or is that going to stay sort of about the same at this level for a while?"
Rory J. Cutaia - "Well, look, we are not promoting it; we’re not marketing it; we’re not pushing that. And for all of the obvious reasons. We call it lumpy revenue. We never know when it’s going to come up. It’s not contracted for. It’s not predictable. However, look, we’ve got a bunch of large clients who rely on us for that service. And we’re going to continue to service them as and when they need it. But we will not be offering that to new clients. So, whether with it declines or it stays the same, it’s to be determined. But we’re really laser-beam focused on the SaaS recurring business right now. Look, as you can honestly tell, the growth in Q3 of that business over the prior quarter is really pretty extraordinary. So again, you’re right. It’s low-margin business, unpredictable. I wouldn’t expect to see any meaningful growth come out of that"
"So, Rory, on the non-digital, non-recurring part of the business, which has terrible margins, should we expect that to decline as the digital business increases? Or is that going to stay sort of about the same at this level for a while?"
Rory J. Cutaia - "Well, look, we are not promoting it; we’re not marketing it; we’re not pushing that. And for all of the obvious reasons. We call it lumpy revenue. We never know when it’s going to come up. It’s not contracted for. It’s not predictable. However, look, we’ve got a bunch of large clients who rely on us for that service. And we’re going to continue to service them as and when they need it. But we will not be offering that to new clients. So, whether with it declines or it stays the same, it’s to be determined. But we’re really laser-beam focused on the SaaS recurring business right now. Look, as you can honestly tell, the growth in Q3 of that business over the prior quarter is really pretty extraordinary. So again, you’re right. It’s low-margin business, unpredictable. I wouldn’t expect to see any meaningful growth come out of that"
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